In a conversation with a prospective Airbnb realtor, I learned that she was having trouble signing up for Airbnb because there were no payment options available to the Nigerian population.
Of course, he went ahead and stopped
testing the platform and decided to implement a similar model without Airbnb's
registration process.
She said: You know that security is very important in all these things. They want to make sure that nobody scams you and that is why they are strict with payments. Bitcoin is not even accepted because Bitcoin cannot be traced back.”
There are the arguments presented:
- Is something traceable if I can't find an address or name?
- Is it traceable if is there no central authority to track it?
Before I give my honest opinion, I want to say that finding an address or a name is the person/individual behind it is not validated by an account.
An address can be fake, just like a name.
There is also the closed accounting system of the traditional financial institution.
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How do you verify if this person has been involved in questionable activities before?
Because there is a central authority, blockchain compliance specialists and regulators work tirelessly to ensure that
fraudulent activity is investigated and verified.
Is Bitcoin Really Traceable?
Yes, Bitcoin can be traced as every transaction is transparent. Bitcoin is based on blockchain and blockchain acts as a public ledger for transactions. This means transactions from your crypto wallet address are visible to everyone.
While we were discussing this with the real estate agent, I tried to explain this to her, but she kept implying that she would never be able to find the owner of a bitcoin wallet because it has no name attached and no -Central authorities reporting the name as a scam, etc.
It's easy to forget that technology is becoming more sophisticated and people are now flying to Mars! The bottom line is that anything is technically possible in the world we live in today. The effort required to associate a wallet address with a person or an IP address is shrinking.
Identity verification is required by cryptocurrency exchanges, and law enforcement agencies are seeking crypto experts. Crypto agencies also hire blockchain compliance specialists and supervisors, so yes... security is strict on that end too.
Payment platforms also require KYC processes, so using Paying Bitcoin for it doesn't mean your transactions are hidden from the world.
Does Wallet Choice Matter?
Bitcoin can be stored in several ways, both in a cold wallet and a hot wallet (Learn more about crypto wallets). When bitcoin is kept in a cold wallet, it is not traceable. It just sits there with no connectivity and not transacting. But times are changing, and in a conversation with a cryptocurrency compliance specialist, she explained that regulations on the use of cold wallets will be tightened. This is to ensure that criminals don't take advantage of them.
It is now possible to subpoena a company to identify a specific customer in serious cases. For a hot wallet, the wallet address can always be scanned on the blockchain and all your transactions are visible to anyone looking at them. So whatever your wallet choice, regulators and researchers are paying more attention. For every bitcoin transaction you make, you leave a trail.
You can be traced!
This is why you should choose Bitcoin for payments:
- Transparency: The blockchain contains records of bitcoin transactions. Everyone can access and use the blockchain. This means that any transaction made from a specific crypto wallet address can be confirmed by anyone.
- KYC Compliant: To use bitcoin payment solutions for websites or platforms, users must complete KYC (Know You're Your Customer). This makes it easy to assign wallet addresses to a person.
- Pseudonym: Blockchain makes it hard to be invincible. Why? Because it works online. Each transaction must be confirmed on multiple computer networks before it can be recorded. Once you are done, the transaction cannot be deleted as this requires you to delete the transaction from the other computer networks. This makes it difficult to spoof and duplicate transactions. Unlike the traditional financial system where your transactions are recorded just for you, Bitcoin transactions are recorded across multiple networks
- Comfort: To make a bitcoin payment, users only need a minimum of mobile phones and an internet connection. This makes it easy to use and convenient for people.
- Global reach: Since Bitcoin is a borderless currency, users can use it to pay for goods and services from anywhere in the world. Organizations can choose different payment platforms, but integrating Bitcoin payments is also a great advantage.
Conclusion
To drive mainstream adoption, we need to change the way we think about digital currencies. We must dispel the doubts of others and encourage the use of cryptography in conducting daily activities such as shopping, paying for meals, etc.
Transparency does not replace traceability, but rather add it added. Bitcoin's transparency improves its traceability, ensures everyone gets a fair hearing and gives us access to verify things for ourselves.
Finally, let me leave you with this thought:
- Do you think that fiat payments are traceable because you have a name (which will be faked can) or find an address (which may be fake)? be an end)?
- Think of traceability as something private and closed but accessible to few people, or something public? with open and accessible registers for all.
I would like to know your answer. Please leave a comment.
Disclaimer
The content is for informational purposes only, may include the author’s personal opinion, and does not necessarily reflect the opinion of TheDailyCryptoZ. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.
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